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Stocks Vs. Mutual Funds Vs. Uitf Vs. Pre-need


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If you are confused about which investment instrument is right for you, consider attending the First Financial Planning Expo this weekend at the S.M. MegaTrade Hall. It will be from September 1 to 3 and all industries will be represented.

 

For those who are interested about learning how to choose between stocks, mutual funds, UITF's and pre-need plans, consider attending my talk on personal financial planning on September 2 from 1030 a.m. to 1230 p.m. It will be entitled Financial Planning for Non-Financial People and I will be explaining how all of those investment instruments work as well as what the inherent risks of each instrument are. Lastly, I will be showing how you can select which instrument is right for you.

 

There is a 20 peso fee to enter the Expo though the talk itself will be for free and open to everyone.

 

Hope to see you people there.

 

Carpe Noctem.

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Can you save 5% of your annual income, im into investments, if you are intested pm me or txt me at 09166402972, dont let your money be stuck in banks if you want to beat up inflation rate, invest your money in different ways and save for your future and the future of your love ones

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  • 3 weeks later...
Can you save 5% of your annual income, im into investments, if you are intested pm me or txt me at 09166402972, dont let your money be stuck in banks if you want to beat up inflation rate, invest your money in different ways and save for your future and the future of your love ones

 

Please post what you are offering here.

 

Stock pa rin - for newbie, passive, long-term investor buy the major blue chips specially Meralco, San Mig, PLDT etc. Buy a couple of shares from time to time (average over a period of months/years).

 

For tsupitero - well that would be another story.

 

Would not recommend stocks for a newbie. A couple of shares? You will have to go through a broker and they will definitely not accept your account for a couple of shares. That kind of strategy is very long term and should only be done if you will not need the return for a very long time, as in you are doing this for your children or grandchildren.

Edited by Dr_PepPeR
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nterest rates are presently at an all time low. This means Money Market and Bonds UITFs may be steadily slow going up even if they are Mark to Market

 

Thus you may want to consider Mixed Funds UITF's. 50-50 up to 70-30 mix of Fixed Income and Blue Chips Stocks, depending on the bank. IF you have been monitoring the stock market, particularly the index (which is affected by the Blue Chips) then you will be quite comfortable with this. If you are not the stock market type or have limited knowledge, suggest you first ask people who do.

 

The reward potential is great here but you must also know how to manage your risk: Meaning knowing when to come in, how long to stay, when to get out, and how long to wait before going in. This is kinda like playing stocks but on a very general level as you are consdiering the average of the Blue Chips and lest you forget, the the Fixed Income funds which actually comprise the majority of the said Balanced Funds.

 

Lastly considering the PSE Index's "very interesting" movements for the past weeks, you may want to consider investing in the Index Funds, which only a few banks offer. Here you are considering the index fund's movements ONLY.

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Hi im planning to invest all my earnings next year... and i need advice on what to invest and when to invest.

My first idea is to buy government fund but if you can give me some good ideas on where to invest,that would be great.

 

I hope while im studying here in the philippines,im also earning big cash at the same time...

 

Dr.Pepper you seem to know everything about investment.. Can you help me sir.. I wanna be successfull jst like you :)

 

:mtc: :mtc: :mtc:

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Hi im planning to invest all my earnings next year... and i need advice on what to invest and when to invest.

My first idea is to buy government fund but if you can give me some good ideas on where to invest,that would be great.

 

I hope while im studying here in the philippines,im also earning big cash at the same time...

 

Dr.Pepper you seem to know everything about investment.. Can you help me sir.. I wanna be successfull jst like you :)

 

:mtc: :mtc: :mtc:

 

First you will have to determine your objective. Is it to save up for a big purchase, for retirement, for high income etc. What is your time horizon? What is your risk appetite? How familiar are you with the investment instruments available to you?

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First you will have to determine your objective. Is it to save up for a big purchase, for retirement, for high income etc. What is your time horizon? What is your risk appetite? How familiar are you with the investment instruments available to you?

/quote]

 

My goal is to have high income,i hope i can achieve this in a year...i prefer those with minimum risk.

Im not that familiar with any type of investment..maybe some good advice might help

 

Thanx Dr. Pepper :thumbsupsmiley:

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Doc pep, I'm interested in these types of investments as well. I'm looking to have something between a high income to long term investment for retirement. I'm not familiar at all with any financial investment instruments what so ever and I also have a moderate risk tolerance. Hope you can help me out. you got pm btw. :P thanks!

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Doc pep, I'm interested in these types of investments as well. I'm looking to have something between a high income to long term investment for retirement. I'm not familiar at all with any financial investment instruments what so ever and I also have a moderate risk tolerance. Hope you can help me out. you got pm btw. :P thanks!

 

Would be glad to help you sir, I'll see you today at 11:30am.

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It was a pleasure to meet you doc! thanks for enlightening me with regards to uitf's and it's mechanics.

I'll probably take your advice and put it away for a couple of months first.

 

And it was likewise my pleasure to meet a gentleman such as you sir. Unfortunately interest rates are at an all time low these days so keep your placements short, most likely until the first quarter of next year. If something happens on the political front soon, then all bets are off.

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If you are confused about which investment instrument is right for you, consider attending the First Financial Planning Expo this weekend at the S.M. MegaTrade Hall. It will be from September 1 to 3 and all industries will be represented.

 

Hello Talley:

 

Masyado pa itong matagal, paki text na lang ako pag malapit na.

 

I don't want to miss this.

 

See you all hopefully

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can someone enlighten me about fees of uitf vs mutual funds. medyo nalilito lng ako. is sales load of mutual funds a one time thing or charged even when you make additional investment. also are they taxable? which is better investment assuming uitf A and mutual B will give a similar YTD return .

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can someone enlighten me about fees of uitf vs mutual funds. medyo nalilito lng ako. is sales load of mutual funds a one time thing or charged even when you make additional investment. also are they taxable? which is better investment assuming uitf A and mutual B will give a similar YTD return .

 

I'm not quite sure how often the sales loads of mutual funds are charged, I would say it would depend on the mutual fund. Most of the MFs I know charge it only on the initial investment. UITFs do not charge sales load if they are banks, since they rely on their branch network and their own advertising budget for the sales cost. Most funds whether an MF or UITF pay the final withholding tax on their investments so the income realized should be net of taxes. I will inhibit myself from discussing which is the better investment since I was the one who started a UITF thread.

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can someone enlighten me about fees of uitf vs mutual funds. medyo nalilito lng ako. is sales load of mutual funds a one time thing or charged even when you make additional investment. also are they taxable? which is better investment assuming uitf A and mutual B will give a similar YTD return .

 

 

as far as i know, mutual funds charge a certain percentage up front (sales load) for every investment that you make.

 

In my case, I have backloaded my sales load (5 years I think) so that if my investment is still there after the five years or more, I will no longer have to shoulder the sales load. Also the sales load decreases for every year that I do not move my investment.

 

advantage for the mutual fund I have is that additional investments are in increments of 5k, so its easy to add on a little every time.

 

i think that income made from both instruments are taxable.

 

 

I have one question however, has anyone done any analysis with regards to the performance of uitf's and/or mutual funds of different financial institutions (banks, insurance companies, etc)?

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can someone enlighten me about fees of uitf vs mutual funds. medyo nalilito lng ako. is sales load of mutual funds a one time thing or charged even when you make additional investment. also are they taxable? which is better investment assuming uitf A and mutual B will give a similar YTD return .

 

For Mutual Funds, the sales loads are charged every time you make a placement. For example, you make an initial placement of 10,000 pesos; if you're sales load is 2.2%, then you will be charged 220 pesos and your net invested amount if 9,780 pesos. Now, if you make another placement, let's say for 20,000 pesos, a couple of weeks later, then you will be once again charged 2.2% For UITF's I defer to Dr. Pepper's explanation above.

 

On taxes, most MF's are already taxed at the source so there are no additional taxes. (Feel free to correct me here.)

 

On which is better -- it would have to depend on what you are looking for. For some people, UITF's are better, for some, MF's. Assuming a similar return, a person's choice would be determined by the following:

 

First, accessibility. If you live near a bank branch or have a neighbor who deals in MF's, it makes investing much easier. This is because it becomes easy to deposit or withdraw if you can easily talk to your agent. Bad trip ang fund, no matter the performance pag hindi mo naman makuha pera mo. Imagine if you live in Fairview tapos taga Alabang agent mo.

 

Second, minimum placements. Some funds have high minimum requirements and long holding periods. Find a fund that fits your budget and your timeline. If you can't afford a fund, wag mo ipilit.

 

Third, risk profile. Some funds carry more risk due to the nature of their placements. So, if I had two funds that gave the same return, I would pick the one with lower risk.

 

Hope that helps.

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while there is no sales load for UITF, Offer NAVPU for some banks (i am not sure for others) are higher than their current value by almost 2%, e.g current NAVPU - 350, Offer NAVPU 355. i.e you will buy the unit at P355 not 350. For MF the NAVPS is the market value. In effect, this is is the sales load for UITF. So better to compare which banks are offering lesser Offer NAVPU.

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For Mutual Funds, the sales loads are charged every time you make a placement. For example, you make an initial placement of 10,000 pesos; if you're sales load is 2.2%, then you will be charged 220 pesos and your net invested amount if 9,780 pesos. Now, if you make another placement, let's say for 20,000 pesos, a couple of weeks later, then you will be once again charged 2.2% For UITF's I defer to Dr. Pepper's explanation above.

 

On taxes, most MF's are already taxed at the source so there are no additional taxes. (Feel free to correct me here.)

 

On which is better -- it would have to depend on what you are looking for. For some people, UITF's are better, for some, MF's. Assuming a similar return, a person's choice would be determined by the following:

 

First, accessibility. If you live near a bank branch or have a neighbor who deals in MF's, it makes investing much easier. This is because it becomes easy to deposit or withdraw if you can easily talk to your agent. Bad trip ang fund, no matter the performance pag hindi mo naman makuha pera mo. Imagine if you live in Fairview tapos taga Alabang agent mo.

 

Second, minimum placements. Some funds have high minimum requirements and long holding periods. Find a fund that fits your budget and your timeline. If you can't afford a fund, wag mo ipilit.

 

Third, risk profile. Some funds carry more risk due to the nature of their placements. So, if I had two funds that gave the same return, I would pick the one with lower risk.

 

Hope that helps.

 

Thanks Talley, I haven't really looked at a Mutual Fund yet and I learned something there. You are of course correct about taxes being withheld at source for the investments of most MFs and UITFs. The BIR tried to impose income tax on the proceeds from redemptions on UITFs but the banks came out with a position paper to oppose it, using the tax withheld at source argument. The BIR did not pursue this course of action so I suppose they accepted this.

 

while there is no sales load for UITF, Offer NAVPU for some banks (i am not sure for others) are higher than their current value by almost 2%, e.g current NAVPU - 350, Offer NAVPU 355. i.e you will buy the unit at P355 not 350. For MF the NAVPS is the market value. In effect, this is is the sales load for UITF. So better to compare which banks are offering lesser Offer NAVPU.

 

Could you tell me which UITFs have offer NAVPUs? As far as I know this is not allowed.

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